McCain, Obama promise Wall Street overhaul
Fearing a meltdown on Wall Street, the U.S. presidential candidates sparred on Monday over who could best restore financial health, with John McCain pledging reform and Barack Obama saying hands-off Republican policies were the problem.
The two nominees for the November 4 U.S. presidential election turned their attention to the economy after a weekend of stunning developments that reshaped Wall Street, with venerable investment bank Lehman Brothers Holdings Inc moving to bankruptcy and rival Merrill Lynch agreeing to be bought by Bank of America.
The broadening financial crisis caused by the weakness in the U.S. mortgage market prompted global stock markets to plummet on Monday, even as U.S. officials and the candidates sought to reassure consumers.
"The fundamentals of our economy are strong, but these are very, very difficult times and I promise you we will never put America in this position again," McCain, a Republican, told a rally in the electoral battleground state of Florida.
"The McCain-Palin administration will replace the outdated patchwork quilt of regulatory oversight and bring transparency and accountability to Wall Street," the Arizona senator said.
Obama, the Democratic nominee, said in a statement the crisis created a major threat to the U.S. economy and underscored the need to modernize the financial system.
"I certainly don't fault Senator McCain for these problems, but I do fault the economic philosophy he subscribes to," said Obama, an Illinois senator.
"It's a philosophy that says even common-sense regulations are unnecessary and unwise, and one that says we should just stick our heads in the sand and ignore economic problems until they spiral into crises."
KEY TALKING POINT
McCain and Obama have made the economy a key talking point on the campaign trail, seeking to address voter concerns about high gasoline prices, the credit crunch caused by the mortgage crisis and increasing joblessness.
It was unclear which candidate voters might be more likely to turn to in an ongoing climate of economic turmoil. Polls generally show voters believe Obama would do a better job than McCain in handling the economy, but his lead on economic issues has been shrinking.
Obama has long called for an overhaul of Wall Street regulations, saying the subprime housing crisis and other problems stemmed in part from lack of transparency and accountability in the financial system.
"The challenges facing our financial system today are more evidence that too many folks in Washington and on Wall Street weren't minding the store," he said.
McCain, whose economic message usually focuses more on his promise to keep taxes low and reduce government spending, put more than his usual emphasis on Monday on the need for regulatory reform.
His campaign released an ad titled "crisis" that promised tougher rules covering Wall Street to protect citizens' savings.
Obama and McCain both said they did not want a taxpayer-funded bailout of Lehman.
AI
